Slater and Gordon has today welcomed the announcement by the Australian Securities and Investments Commission that it will take legal action against Storm Financial directors, Emmanuel and Julie Cassimatis, founders of the failed investment advisory firm.
Slater and Gordon also welcomes ASIC’s decision to commence legal proceeding against a number of banks who lent money to investors who took advice from Storm Financial.
Mr Damian Scattini, from Slater and Gordon, said the firm has always maintained ASIC is best placed to secure an industry-wide approach to resolving the issues faced by thousands of former Storm clients.
“This is also good news for the more than 1,500 of our clients who have already settled their claims against the Commonwealth Bank through the resolution scheme negotiated by Slater and Gordon with the Bank.
“Today’s announcement means our clients who have gone through the CBA resolution scheme and received compensation will now be able to sit in their homes and wait to see if ASIC is able to get them any additional compensation from the Bank,” Mr Scattini said.
“It is important to remember that Slater and Gordon clients who have settled claims against the CBA and any other bank have the benefit of an “ASIC carve out” provision in their settlement agreements.
“This provision provides that any client who has settled their claim as part of the resolution scheme is able to receive further compensation if ASIC achieves a better result, by negotiation or litigation.
“This was an integral part of the original settlement scheme and we are pleased it is now unfolding as it should,” Mr Scattini said.